These 2 Delta Air Lines Analysts Remain Bullish Despite Earnings Miss

Delta Air Lines, Inc. DAL Thursday reported its third-quarter revenue ahead of Street expectations but its earnings missed expectations.

Morgan Stanley On Delta Air Lines

Analyst Ravi Shanker maintained an Overweight rating and a price target of $65.

The company’s quarterly results were broadly in-line with expectations, Shanker said in a note. “Coupled with strong commentary on the conference call and positive cues into 2023, airline results are off to a good start and are supportive of the bull case,” he added.

Check out other analyst stock ratings.

Raymond James On Delta Air Lines

Analyst Savanthi Syth reiterated a Strong Buy rating and a price target of $52.

Delta Air Lines benefited “relative to peers from widening crack spreads due to its refinery,” Syth wrote in a note. “Conversely, we now expect greater non-fuel cost headwinds in part due to steps taken to adapt to developments in the regional segment, including bringing back the 717 fleet,” he added.

“Despite cost pressures (not all of which are unique to Delta amid regional constraints and pilot pay rates coming in higher than expected), we continue to see unique tailwinds for Delta” compared to its legacy peers, including its lower debt burden versus American Airlines Group Inc AAL, the “lack of a hefty aircraft order book” versus United Airlines Holdings Inc UAL, its “history of balance capital deployment, and structural advantages,” the analyst further mentioned.

DAL Price Action: Shares of Delta Air Lines had risen by 3% to $31.29 at the time of publication Friday.

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Photo: Delta